Archive · 25 Aug 2026
Sebi Proposes Channel Partner Framework to Expand Retail Bond Access
Sebi is considering a new way to help more people buy bonds.
Bonds are investments that can provide money to companies or other borrowers.
Under the plan, approved channel partners could help people use online bond platforms.
They could assist with forms, identity checks and placing orders.
The plan is especially meant to help people in smaller cities and rural areas.
These partners would not be allowed to hold customers’ money or securities.
They would be paid by the online bond platform, not directly by customers.
Sebi is asking the public and industry participants to comment on the proposal.
Sebi has proposed Fixed Income Channel Partners to expand retail access to bonds through online bond platform providers.
The framework would target investors in Tier-II, Tier-III and rural areas by supporting onboarding, documentation, KYC and transactions.
Eligible individuals would need to be Indian citizens aged at least 18, have passed Class 12 and hold relevant NISM certification.
FICPs could not handle client funds or securities, and orders would be routed directly through online bond platforms.
Sebi said corporate bonds exceeded Rs 60 lakh crore as of July 31, 2026, and invited comments by September 11, 2026.
- Who
- The Securities and Exchange Board of India (Sebi), online bond platform providers and proposed Fixed Income Channel Partners.
- What
- Sebi has proposed a framework allowing eligible individuals and stock-exchange-listed entities to distribute permitted fixed-income securities through online bond platforms.
- When
- The consultation paper was issued on Friday; public comments are invited by September 11, 2026. The market figures cited are as of July 31, 2026.
- Where
- The framework is intended to improve access in Tier-II and Tier-III cities and rural areas in India.
- Why
- To broaden retail participation in fixed-income securities, which Sebi said remains concentrated among institutional investors.
- Proposed intermediaries
- Fixed Income Channel Partners, or FICPs, would support online bond platform providers.
- Individual eligibility
- Applicants would need to be Indian citizens, at least 18 years old, Class 12 pass-outs and holders of a valid NISM Series: Fixed Income Securities certification, among other requirements.
- Permitted activities
- FICPs could help onboard clients, complete documentation, conduct KYC procedures and facilitate transactions.
- Restrictions
- FICPs could not handle client funds or securities or receive or pay them in their own name or account.
- Client charges
- The proposed commission, fee or brokerage charged to clients would be capped at 2.5% of the investment value.
- Corporate bond market
- Outstanding corporate bonds grew from about Rs 17.5 lakh crore at the end of FY15 to more than Rs 60 lakh crore as of July 31, 2026.
- Public consultation
- Sebi invited stakeholder comments on the consultation paper until September 11, 2026.